A Complete Analysis Of Products & Services Of MBL

                                                

 TABLE OF CONTENTS

	CONTENTS	Page No
	Preface	I
	Acknowledgement	II-III Ii
	Executive Summary	IV-V
	CHAPTER ONE: Introduction of the report
1.1	Introduction	1-2
1.2	Origin of the report	3
1.3	Background of the report	3
1.4	Objective of the study	3-4
1.5	Methodology	4-5
	1.5.1  Methodology of the study
	1.5.2  Scope of the report
1.6	Limitation of the report	5
	CHAPTER TWO:  Organizational overview of MBL
2.1	The MBL	6
2.2	Board Structure	7
2.3	Organizational Structure	7-8
2.4	Department of MBL	8-11
	2.4.1 Administrative Department
	2.4.2 Operational Division
	2.4.3 Miscellaneous / other department
	2.4.4 Marketing Division
	2.4.5 Training Division
2.5	Organization chart	12
2.6	Vision, Mission and Objectives of MBL	13
2.7	Special Features of the Bank	13-15
2.8	Different credits offered by the MBL	15
2.9	Major feature of Bank	15-16
2.10	Performance of the MBL	16
2.11	Operating result	16
2.12	At a Glance the improvement of MBL	16
2.13	SWOT Analysis	17-18
	CHAPTER THREE: Products & services of MBL
3.1	Product	19
3.2	Asset Product	19
	3.2.1   Loan (General)	19
	3.2.2   House Building Loan(General)	19
	3.2.3   House Building Loan(Staff)	19
	3.2.4   Other loans to Staff	19
	3.2.5   Cash Credit(Hypo)	19
	3.2.6   Hire Purchase	20
	3.2.7   Lease financing	20
	3.2.8  Consumers Credit Scheme	20
	3.2.9   SOD (General)	20
	3.2.10 SOD (Others)	20
	3.2.11 SOD(Export )	20
	3.2.12  PAD	21
	3.2.13  LTR	21
	3.2.14  IBP	21
	3.2.15  Export Cash Credit(ECC)	21
	3.2.16  Packing Credit (PC)	21
	3.2.17  FDBP	21
	3.2.18  FDBP(Local)	22
	3.2.19  FBP	22
	3.2.20  LDBP	22
	3.2.21  Personal Loan	22
	3.2.22   Car Loan	22-23
3.3	Liability  Product	23
	3.3.1 Monthly Savings Scheme	23
	3.3.2 Double Deposit scheme	23
	3.3.3 Consumer Credit Scheme	23-24
	3.3.4 Small Credit Scheme	24
	Ty 3.3.5 Doctors credit scheme	24-25
	3.3.6 Rural development scheme	25
	3.3.7 Advance Savings Scheme	26
	3.3.8 Women Entrepreneurs Development Scheme	26
	3.3.9 Deposit	26-27
3.4	Services	27
	3.4.1 Account Opening Section	27-35
	3.4.2 FDR and Ancillary Services Section	36-47
	3.4.3 Collection and Clearing Section	48-54
	3.4.4 Cash Section	54-57
	3.4.5 Accounts Section	58-59
	CHAPTER FOUR:  Special Services
4.1	Online Banking	60
4.2	SMS Services	60
4.3	ATM  Services	60
4.4	Credit and Debit Card	60
4.5	Prepaid Card	61
4.6	Introducing SWIFT Copy	61
4.7	Evening Banking	61
	CHAPTER FIVE: Foreign Exchange Section
5.1	Define Foreign  Exchange	62
	5.1.1   Composition of Import and Export	62
	5.1.2  Terms of Trade	63
	5.1.3  Balance of Payment	63
	5.1.4  Imports Restrictions	63
	5.1.5  Export Promotion	64
5.2	Sales and Foreign Terms in Foreign Trade	64
	5.2.1  Types of Documentary letter of Credit	64-70
	5.2.2  Amendment of L/C	70-74
	5.2.3  Loan against Imported Merchandise (LIM)	74-75
	5.2.4  Export Section	75
5.3	Function of Export Section	75
	5.3.1  Back to Back L/C (Foreign)	76
	5.3.2  Back to Back L/C (EDF)	76
	5.3.3  Back to Back L/C (Local)	76
	5.3.4  Procedure for Back to Back L/C	76
	5.3.5  Consideration for Back to Back L/C	77
	5.3.6  Payment Under Back to Back L/C	77
	5.3.7  Reporting of Bangladesh Bank	77
	5.3.8  Export Procedure	77-78
	5.3.9  Document of Export	78
	5.3.10 Procedure for Collection of Export bill	78-79
	5.3.11 FDBC Register	79-80
	CHAPTER SIX: Corporate Social Responsibilities of MBL
	Environment	81
	Sustainable Banking Products	81
	Supporting Education	81
	Supporting Sports And Culture	81
	Supporting flood And Cyclone ‘SIDR’ affected people	82
	Mercantile Bank   Foundation	82
	CHAPTER SEVEN :  Recommendation and Conclusion	83-86
	Appendix-1: Acronyms used in the report	I-II
	Appendix-2: Bibliography	III

    

PREFACE

An Internship Program is very much effective for a student to get the practical knowledge. It offered the best opportunity to me to undertake a temporary work assignment as Intern to enable me to have a realistic exposure to job and organizational conditions that helped me to bridge up the gap between classroom learning and actual job conditions. Actually, Internship prepared me for a prospective job. As the fulfillment of BBA program. I have done Internship and prepared a research report. Which entitled “ A Complete Analysis Of  Products & Services Of  Mercantile Bank Ltd.’’. In this report I try my best to represent Mercantile Bank with its various facilities & lacking in every section.

Department of Business Administration, Metropolitan University, Sylhet has adopted the policy of assigning an internship assignment to every student as a part and parcel of the academic curriculum of the BBA Program. Preparation of internship report by the students will acquaint them to practical knowledge. The internship report is prepared under the guidance of a supervisor.

 As a student of BBA (Management) I have taken a practical training from February 17, 2008 to May 17, 2008, in Mercantile Bank Limited, Sylhet Branch. I have collected necessary information from that branch.

 I have tried my level best to submit internship report after the investigation as much as possible. I was given a limited time to prepare such a difficult report. So there may be any slip of pen for which I beg pardon. I am thanking to my teachers, friends and staff of Mercantile Bank for their helpful guidance and suggestions.

Acknowledgement

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  Executive Summary

The Internship report has been prepared on “A Complete Analysis of products & Services of Mercantile Bank Ltd” based on secondary data and information. The information used in the report has collected from various sources such as published materials like annual report, the credit manual of Bank. Daily statement of affairs of Sylhet branch and articles related to banking activities.

I have prepared this report to represent the available product & service facilities, service quality, their strength & weakness, their efficiency to serve customer, terms and conditions etc.

Mercantile Bank always tries to launch new products and services according to customers test and preference. MBL also has the trend to change the old scheme and try to serve with modern technology. MBL works with the aim to achieve service excellence and maximize shareholder’s value. 

Foreign Exchange Department (FED) is the international department of Bangladesh Bank issues license to scheduled banks to deal with foreign exchange. These banks are known as Authorized Dealers. If the branch is authorized in foreign exchange market, it can remit foreign exchange from local country to foreign countries. So Mercantile Bank, Sylhet Branch is an authorized dealer.

There are three kinds of foreign exchange transaction:

1.     Import

2.     Export

3.     Remittance

4.     Issuing T/C & Endorsement of Dollar.

The overall performance of MBL is good. The environment, staff behavior & attention towards the customer are also good. MBL always works with latest technology & it has the reputation of being the provider of good quality services. Their special banking services like – SMS Banking, Online Banking , Evening Banking etc are very effective to create customer satisfaction .

  

MBL’s corporate social responsibility focuses on:

• Environment
• Sustainable Banking Products
• Supporting Education   
• Supporting Sports And Culture
• Supporting flood And Cyclone ‘SIDR’ affected people
• Mercantile Bank   Foundation

MBL believes that human  resource development through continuous and need based training  is the most crucial factor for organizational growth . It provides training opportunity for  employees and motivate them to provide excellent customer service .

BML has not enough branches in different districts of Bangladesh. So MBL should

increase the number of their branch to get more customer .

MBL also has to consider their fees and charges & their formal procedure and should change them. They should build such policies that are reachable for all kinds of customers.

There is more Private Bank in Bangladesh and that’s why competition is very high. Banks are always try to overcome their bad performance and try to become more effective. So it becomes a challenge for MBL to retain its existing customers .There is a hope that, MBL is always very conscious about its consumer banking and always try to make change with time want to modernize its products and services. Therefore it will be able to gain the competitiveness and overcome all challenges.

1.1                                                INTRODUCTION

Mercantile Bank is a well known Bank in our country. It has gained firm confidence in the minds of its clients within a short period of its operation. The success is primarily attributed to prompt and bold decision-making, efficient and cordial services, economic use of resources and introduction of new financial products and technologies .The continued endeavors of the Management and Staff of the Bank under prudent guidance and timely support of the Board of Directors have substantially contributed to success of the Bank.

Mercantile Bank Limited was incorporated in Bangladesh as a Public Limited Company with limited liability under the Bank Companies Act 1991on 20 May 1999 and commercial operation on June 1999. The Bank went for public issue of shares on in 2003 and its shares are listed with Dhaka Stock Exchange and Chittagong Stock Exchange.

 During this short span of time the MBL has been successful to position itself as a progressive and dynamic financial institution in the country. The MBL has been widely acclaimed by the business community, from small entrepreneurs to large traders and industrial conglomerates, including the top rated corporate borrowers for forwarding-looking business outlook and innovative financing solutions. Thus within this very short period of time it has been able to create an image for itself and has earned significant reputation in the country’s Banking Sector as a bank with vision. Presently it has 41(Forty one) branches in operation up to31decmber 2007. Recently Small and Medium Enterprise (SME) Financing Scheme has been introduced to assist new and experienced entrepreneurs to invest in small and medium scale industries.  During the year 2008 the MBL has plan to open more branches in countries.

MBL is fully committed to the delivery of superior shareholders’ value, initiative ranging from having more efficient capital structures & improving return on equity , pursuing a high dividend payout policy to the pursuit of excellence corporate governance have been undertaken with a view to enhancing superior shareholder value. With an unbroken profitability track record of 8 years since Mercantile Bank started operation despite devastating flood & economic upheavals after 1/11 underpinning the investors’ confidence.

Mercantile Bank Limited has been licensed by the Government of Bangladesh as a scheduled Bank in the private sector in pursuance of the policy of liberalization of banking and financial services and facilities in Bangladesh. In view of the above, the MBL has, within a period of 6 years in operation of its operation, achieved a remarkable success and always met up capital adequacy requirement set by Bangladesh Bank.

  

1.2 Origin of the Report:

This report has been prepared as a requirement of the internship program based upon the Mercantile Bank where my organization supervisor is Mr. Debojyoti Mojumder, Assistant Manager of Sylhet Branch. And my institution supervisor is Most Alhamra Begum, Assistant professor, Department of Business Administration, Metropolitan University, Sylhet. My institute supervisor duly approved the topic decided for doing the report. Since the BBA program is an integrated, practical and theoretical method of learning, the students of the program are required to have practical exposure in any kind of business organization in last term of this course.

1.3 Background of the Report:

Banking in Bangladesh has passed through an era of unprecedented all round growth since the nationalization of commercial banks aftermath our independence. The branch network has widened and functional dimensions broadened. Loan activities in the banks now-a-days have assumed new dimensions and this requires up to date knowledge and skill on the part of the bank managers and those in the field of banking profession about the state of art of lending wisely. Extending credit always bears the risk of being defaulted. So policy of credit expansion and credit management style has inherent importance to the bankers. And the recent wary about the classified loan hints the importance of studying the credit management of the private commercial banks. Since the MBL is enjoying the lowest rate of classified loan among the commercial banks operating in the country.

1.4 Objective of the Report:

This paper is prepared with a view to highlight my three months period banking experience through the analysis of products and services available at Mercantile Bank . The objectives of this report are:    

·       To get an overall idea about Mercantile Bank.

·       To show available product and services.

·       To analysis the unique features of MBL.

·       To identify the strength, weakness, opportunity and threats for MBL.

·       To determine the various service dimensions and facilities that customers demand

·       To know Bank’s current level of online quality and standards. 

·       To suggest ways of improving the service quality that accommodates a rapidly growing customer volume.

                                                                                                                              

1.5      Methodology:

1.5.1 Methodology of the study

Approach:

 My study will be based on both primary as well as secondary information.

Primary source:

The method of collecting primary data will be mostly limited to formal and informal interviewing. I have planned to interview top level (in-charge o f the division), mid level managers to gain insights of their ways of doing business. I understand that they are important and busy people. Therefore my interview schedule will be subject to their availability.

Secondary source:

For collect secondary information. I will review any and all related publication available to me such as Banks annual report, brochures etc. Moreover, I will also use the internet to visit bank’s global website and other related web pages for any information related to my study.

1.5.2    Scope of the report

I have worked as an internee in Mercantile Bank (Laldighirpar , Sylhet ), which is one of the most successful banks in our country . When I was there I worked in different sections of this Bank. These were Account opening section, Collection & Clearing section, Cash section and accounts section. The main scope of this study is the findings regarding MBL’s products & services availability & techniques. Many aspects of the operation & product diversification along with the production technology of MBL could be adopted by our planners to design our banking sector into a real effective one. This report may act like a guide in revealing some of the important aspects of MBL. This report tends to determine the customer satisfaction.

1.6 Limitation of the report

• Limitation of time was one of the most important factors that shortened the present study. Due to time limitation many aspects could not by discussed in the present study.

• Availability of critical information is crucial to my analysis. Some of the information can be deemed too confidential by the management, especially the ones regarding corporate strategies, information on matrix system or credit scoring method and strategies they follow to hold its competitiveness in the market. Hence, access to that information will be restricted, which may limit the scope of my analysis.

As I had more dependencies on the primary sources, so there might be some level of inaccuracy with those collected information through adequate verification and cross-checking was used to minimize the error level. 

2.1     The MBL

Mercantile Bank Limited was incorporated in Bangladesh as a Public Limited Company with limited liability under the Bank Companies Act 1991on 20 May 1999 and commercial operation on June 1999. The Bank went for public issue of shares on in 2003 and its shares are listed with Dhaka Stock Exchange and Chittagong Stock Exchange.

 During this short span of time the MBL has been successful to position itself as a progressive and dynamic financial institution in the country. The MBL has been widely acclaimed by the business community, from small entrepreneurs to large traders and industrial conglomerates, including the top rated corporate borrowers for forwarding-looking business outlook and innovative financing solutions. Thus within this very short period of time it has been able to create an image for itself and has earned significant reputation in the country’s Banking Sector as a bank with vision. Presently it has 41(fourty one) branches in operation up to31decmber t2007. During the year 2008* the MBL has plan to open more branches in countries.

The emergence of Mercantile Bank Limited at the juncture of liberalization of global economic activities, after the URUGUAY ROUND, has been an important event in the financial sector of Bangladesh. The experience of the prosperous economies of Asian countries and in particular in South Asia has been the driving force and the strategies behind operational policy option of the MBL. The Company Philosophy-“A Bank for the 21^st Century” precisely the essence of the legend of the Bank’s success.

Mercantile Bank Limited has been licensed by the Government of Bangladesh as a scheduled Bank in the private sector in pursuance of the policy of liberalization of banking and financial services and facilities in Bangladesh. In view of the above, the MBL has, within a period of 6 years in operation of its operation, achieved a remarkable success and always met up capital adequacy requirement set by Bangladesh Bank 

  

2.2 Board Structure

As stated earlier Mercantile Bank Limited Public Limited Company with limited liability under the Bank Companies Act 1991. All the Directors of the Board and Chairman of the Bank are appointed according to act.

The Managing Director is an ex-officio member of the Board of Directors. There are at present 14directors including the Managing Director. 

Board supporting Committee

The Board of the Bank has two supporting committees, which are as follows:

Executive Committee

The members of the Executive Committee are chosen from the directors of the Board The members of the Executive Committee decides upon all routine  and day to day operational matters beyond delegated power of the Management, subject to ratification of Board of Directors.

Audit committee

The audit Committee is formed with three members of the Board o Directors. The audit Committee assists the Board of Directors to ensuring that the financial statements reflect true and fair view of the state of affairs of the Company and in ensuring a good working system in the Bank as per frame work. The Audit Committee is responsible to Board of Directors.

2.3   Organizational Structure

To achieve its organizational goals, the Bank conducts its operations in accordance with the major policy guidelines laid down by the Board of Directors, the highest policy making body. The day to day operation of the Bank is looked after by the management.

Management
The management is headed by the Managing Director.  At present MD is assisted by the one Additional Managing Director and One Deputy Managing Director and Departmental Heads in the Head Office. Bank is different in respect of hierarchical structure from other banks in that it is much more vertically integrated as far as reporting to the Chief Executive is concerned.

The Branch Managers are called Head of Branch report  to the  Deputy Managing Director and, for functional purposes, to the Heads of Departments. Consequently, quick decision making in disposal of cases is ensured.

In addition to the divisions / departments / branches, the following committees, among others are in for smooth function of the Bank:

Management Committee 

 The Management Committee comprising of seniors members of the management meets weekly to discuss relevant agenda and to take appropriate actions for running the Bank smoothly

 Asset Liability Management Committee

Asset Liability Management Committee headed by Managing Director and CEO. Asset Liability Management Committee is responsible of balance sheet risk management.

Credit Committee

The Deputy Managing Director of the Bank head the credit committee. The committee evaluates the credit proposal and either recommendations for approval or declines it.

Other Structure:

§  Incentive structure

§  Code f Ethics / Policy of Business conduct

§  Conflicts of interest

§  Lending to employees, directors or controlling shareholders

§  Transparency and Disclosure

2.4    Departments of the MBL:

Total division and departments of the MBL can be classified under three main aspects of banking. These are as follows.

1.     Administrative departments.

2.     Operational department.

3.     Miscellaneous/other department.

2.4.1. Administrative Department:

The MBL has the following divisions under the administrative department.

i) Human resource division:

This division is assigned to perform the responsibilities of recruitment, posting, transfer, promotion and development of human resources of the bank. They also maintain personal files and service record of the employee’s takes disciplinary actions when necessary.

ii) Branch Control and Expansion Division:

The duties of this division are to prepare test key arrangement among the branches to maintain inter branch accounts and overall control of the branches. Another duty of this division is to study the feasibility of opening new branches.

ii) Public Relation Division:

Another important division under administration department is public relation division .The main activities of this division are as follows:

 a. Circulation of important notices

 b. Issuance of power of attorney to the officers of the bank

 c. Customer service

d. Legal affairs

e. General correspondence within Bangladesh

f. Cash affairs of the bank

iii) Financial administration division (FAD):

This division can be called as the central accounts division because all the account related are done here. All the branches send their monthly statements to the Head Office and this division prepares a consolidated statement by using those branch statements, which shows monthly position of the bank in cumulative basis.

iv) Audit & inspection Department:

This division works directly under the control of the managing director. This division is responsible to arrange periodical internal audit in each branch to conduct special audit, and to follow - up and monitor the banks overall activities

2.4.2 Operational Division:

Under the operational department the following divisions of MBL conduct their respective works.

   ¨Credit division

   ¨ Investment division

   ¨ International Division

   ¨ Card Division

   ¨Treasury operation division

   ¨ Computer and Engineering Division

¨ Credit division:

All activities related the loans and advances of the bank are directed and controlled by the Credit Division. This division deals with different kinds of credit products of the bank.

 These are:

   2Commercial Credit.

   2Secured overdraft (SOD).

   2Cash credit (Hypo/pledge).

   2Consumer credit, small and medium enterprise credit

   2Industrial Credit

   2Lease Finance

   2Hire Purchase

   2Real-estate credit etc.

 

¨ International Division:

 International division of the MBL performs the responsibilities of foreign exchange business on behalf of its branches.  

¨Treasury division:

This unit performs the works of money market operation they borrow and lend money on call basis.

 2.4.3 Miscellaneous / other department:

There are some other important division performing their respective works for the success of the Premier Bank Limited which are as follows

  

2.4.4  Marketing Division:

Marketing division is directly related to the marketing of the bank’s products and services to the customers. It takes all the arrangements in deposit mobilization, customer service related other marketing related activities the main task of this division is to formulate strategies for achieving bank’s corporate goals and objectives.

  

2.4.5 Training Division:

The MBL maintain its own training institute to develop its employees as prominent banker In order to render prompt and efficient service bank needs skilled human resources. This can be done only through structured modular program. For this purpose the MB Training Institute (MBTI) conducts training on various courses, workshops and seminars every year.

 2.5   Organization chart

2.6     Vision, Mission and Objectives of MBL

• Vision

-Would make finest corporate citizen

•Mission

-Will become most caring, focused for equitable growth based on diversified deployment of resources, and nevertheless would remain healthy and gainfully profitable Bank.

•Objectives

- Strategic objectives

To achieve positive Economic Value Added ( EVA) each year.

To be market leader in product innovation.

To be the top financial institution in Bangladesh of CAMEL rating.

To be one of the top three financial institutions in Bangladesh in term of market share in all signification market segment we serve.

To share different type of social welfare  activities.

Financial objectives

To make more profit and maximize return on asset , return on equity and earning per share.

2.7   Special features of the Bank:

MBL is engaged in conventional commercial banking.

§  it is the pioneer to introducing and launching different customer friendly Deposit Schemes to tap savings of the people for channeling the same to the productive sector of the economy.

§  For updating the standard of living of the limited income group of the population, the Bank has introduced Consumer Credit Scheme by providing financial assistance in the form of loan to the consumer for procuring household durables, which already have encouraging responses.

§  The Bank is committed to continuous research and development so as to keep pase with modern banking.

§  The operations of the Bank are computerized to ensure prompt and efficient service to the customers.

§  The Bank has introduced camera surveillance system to strengthen the security service inside the Bank premises.

§  The Bank introduced customer relation management to asses the needs of the customers and resolve any problem on the spot.

Physical and technological resources

A great deal of investment for developing the physical and technological resources base of the Bank has been made. The Bank has its presence in all the major industrial and commercial hubs of Bangladesh in order to cater to the needs of industry and trade. At present, there are twenty conveniently located branches throughout Bangladesh. There are thirteen branches in the capital city of Dhaka, Six in Chittagong , two in Gazipur  and one each in Sylhet Naogaon, Rajshahi, Bogra, Khulna, Rangpur,  Noakhali .

Major features of these branches are:

Ø  Fully computerized accounts maintenance.

Ø  Well decorated air conditioned facilities.

Ø  A fully operational computer network which is currently being implemented. The  work of Local Area Network (LAN) and Wide Area Network (WAN) installation having reliable and secured communication between the branches and the Head Office is in progress to facilitate any Branch Banking and ATM Services. 

Ø  Money counting machine for making cash transactions easy and prompt.

Ø  Fifteen out of twenty eight branches are authorized dealers of foreign exchange. This facilitates speedy disposal of transaction of export and import trade.

2.8 Different Credits Offered by the MBL:

·       Cash credit (Hypothecation)

·       Hire purchase

·       Loan (general)

·       House building (commercial)

·       Lease finance

·       Staff loan (car)

·       Staff loan (building)

·       Secured Overdraft (special scheme)

·       Secured Overdraft (financial obligation)

·       Secured Overdraft (against FDR)

·       Secured Overdraft (against work order)

·       Secured Overdraft (general)

·       Loan against Bills

·       Loan against share

·       Loan against consumer credit scheme (CCS)

·       Loan for Export/Import.

2.9 Major features of these branches are:

Ø  Fully computerized accounts maintenance.

Ø  Well decorated air conditioned facilities.

Ø  A fully operational computer network which is currently being implemented. The  work of Local Area Network (LAN) and Wide Area Network (WAN) installation having reliable and secured communication between the branches and the Head Office is in progress to facilitate any Branch Banking and ATM Services.

Ø  Money counting machine for making cash transactions easy and prompt.

Ø  Fifteen out of twenty eight branches are authorized dealers of foreign exchange. This facilitates speedy disposal of transaction of export and import trade

 

2.10 Performance of the MBL

The MBL’s overall objective is to have a higher profitability than the average of other banks. The MBL has been operating since June 02, 1999.

2.11 Operating Result

The operating revenue of the Bank stood at BDT 962.23 million in 2005 as against BDT 821.76 million in 2004. After necessary provision net profit after tax stood at BDT 386.83 million as of December 31, 2005 as against BDT 312.58 million in 2004. An amount of BDT 316.50 million has been set aside for income tax contribution to National Exchequer as compared to BDT 241.68 million in 2004.

  

2.12 At a Glance the improvement of MBL

                                                                                                            Tk.( in Million )

Particulars	1999	2000	2001	2002	2003	2004	2005	2006	2007
Paid-up Capital	245.00	245.00	276.85	319.765	639.53	79904125	999.27	1199.12	1498.9
Total Assets	4764.98	9364.50	13078.93	16383.93	18324.73	24705.05	28,890.48	37159.65	39348
Deposits	3104.63	8896.20	12234.70	15150.42	16285.19	22385.19	25,727.43	33332.65	39348
Loans & Advances	871.46	3912.97	6707.42	8896.19	10775.95	17669.29	21,857.05	26842.14	31877.86
No.of Branch	4	10	14	15	20	25	28	30	41

2.13 SWOT Analysis

In order to manage strategically SWOT analysis is very vital. In the process of analyzing SWOT managers identify the Strengths and Weaknesses of the company and also the Opportunities and Threats to the company. There are some strengths, weaknesses, opportunities and threats of MBL that I found when I worked with my study. They are pointed out below:

Strength:

• MBL is a well-capitalized bank with potential to increase capital base.

• MBL believes in Teamwork basis work & feel that a loyal and motivated team can produce extra ordinary results.

• MBL Board of Directors is homogenous.

• Computerized customer services (online banking).

• MBL has the reputation of being the provider of good quality services to its potential customers.

• Lending financial service provider identity countrywide. With its strong corporate image and identity it has better position in the minds of customers.

• MBL has a bulk of qualified, experienced and dedicated human resources.

• Interest of loan is lower in MBL than other bank.

• Availability of strong marketing activities through mass media e.g. Television .

Weakness:

• Lack of feasible industrial venture
• Lack of socio economic stability
• Lack of proper industrial counseling and guidance
• Shortage of trained manpower and logistic support.
• Lack of incentives and publicity
• Shortage of working capital
• Technological limitations
• Political unrest situation
• Heavy competition with other private commercial Banks
• Sales and marketing department are not including in this bank.
• Lack of opportunities for profitable investment.
• Unfavorable business environment.
• Increasing cost burden.
• No practice of productivity measurement.
• Lack of accountability.
• Limited number of branches.

Opportunities:

• Public confidence.

• Minimization of risk.

• Bangladesh has a huge customer base for maintaining several accounts .so; MBL has the opportunity to keep these customers by reducing its current fees and charges.

• Our country’s growing population is gradually and increasingly learning to adaptation of consumer finance. As the bulk of our population is middle class, different types of products have very large and easily pregnable market.

Threats:

§  The upcoming private local & multinational banks posses a serious threat to the existing banking network of MBL.

§  Competitive pressure from rivals.

§  Industrial downward trend due to recession, inflation & unemployment.

§  Now -a –day’s different foreign and private banks are also offering similar type of product with an almost similar profit margin for declining profit.

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